German inflation stood at 4.9% in January on a yearly basis, according to the preliminary report by Federal Statistical Office (Destatis) on Monday. The figure was below the December Consumer Price Index (CPI), which rose by 5.3%, but was above the expected 4.3%.
The harmonized index of consumer prices increased by 5.1% in January year-on-year, while it grew 0.9% compared to December.
"The inflation rate remains high despite the absence of the base effects caused in 2021 by the temporary reduction of value added tax rates and the sharp decline in mineral oil product prices in 2020. Crisis-related effects such as delivery bottlenecks and significant price increases at upstream stages in the economic process as well as in energy prices continue to have an impact," the office explained.
